In which scenario would an insurance policy typically apply?

An insurance policy is designed to provide coverage for specific risks and uncertainties, and it typically comes into play when there are losses or damages that fall within the scope of the policy's provisions. When a policy explicitly covers certain events, such as damage to property, theft, or liability for accidents, that is when the policy would apply.

In this context, option B accurately reflects the primary function of an insurance policy, which is to provide financial protection in the event of a covered loss or damage. When such an event occurs, the insured can file a claim with their insurer to seek compensation or benefits, consistent with the terms of their policy.

The other scenarios listed do not represent situations where the insurance policy would typically apply. For instance, choosing not to file claims does not trigger any coverage; cancelling a policy means the insured is no longer covered under that policy; and claims related to pre-existing conditions are often excluded from coverage in health insurance policies or specific types of insurance, which also makes them inapplicable in this context.